Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and the year-ago period. Free cash flow margin improved sequentially but remained below the year-ago level.
- Operating cash flow rose from the prior quarter, while capital expenditure also increased. The resulting free cash flow and margin both improved sequentially.
- Compared to the previous quarter, free cash flow and margin were higher. Compared to the same quarter one year earlier, free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.8B
Cash generated by operations before capital spending.
CapEx
$414.0M
Capital spending and related asset purchases.
FCF margin
21.1%
The share of revenue converted into free cash flow.
TTM FCF yield
2.6%
TTM FCF divided by market capitalization.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-07-26 | $14.7B | $4.2B | $217.0M | $4.0B | 27.4% |
| 2025-10-25 | $14.9B | $3.2B | $323.0M | $2.9B | 19.4% |
| 2026-01-24 | $15.3B | $1.8B | $283.0M | $1.5B | 10.0% |
| 2026-04-25 | $15.8B | $3.8B | $414.0M | $3.3B | 21.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow
Operating cash flow increased from the prior quarter, and free cash flow followed a similar pattern.
The sequential rise in free cash flow was accompanied by a larger rise in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose from the prior quarter, while capital expenditure also increased. The resulting free cash flow and margin both improved sequentially.
Compared to the previous quarter, free cash flow and margin were higher. Compared to the same quarter one year earlier, free cash flow and margin were lower.
Monitor inventory levels, which increased from the end of the prior fiscal year.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $461.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 40.5x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.